Connecticut’s legislature is considering a bill concerning prospective tenants’ criminal records. House Bill 5242 (HB 5242) would prevent landlords from reviewing criminal records past a specific time frame when determining a potential tenant’s eligibility. Though it passed the Housing Committee, it still awaits further decision-making.

The bill would limit landlords’ ability to consider potential tenants’ felony criminal convictions. It bars landlords from considering criminal record information with history greater than three years old. However, HB 5242 offers limited exceptions when deciding whether to rent to a potential tenant.

For example, HB 5242 has a carve-out addressing individuals with convictions that could significantly impact a community’s safety and well-being. This carve-out includes rental applicants with convictions for producing methamphetamines in public assisted housing. HB 5242 also makes an exception for those with a lifetime requirement to register as a sex offender.

Landlords cannot consider most convictions older than three years when deciding whether to negotiate or make a rental agreement. Furthermore, HB 5242 requires landlords to commit to further decision-making when making adverse leasing decisions based on criminal histories. As such, they must provide the rental applicant with a notice of the intended adverse decision. HB 5242 also requires landlords to consider related mitigating factors when reviewing the convictions.

Landlords must consider several mitigating factors before committing to a decision. Such examples include the nature of the convictions, the surrounding circumstances, the time that has elapsed since the conduct, the individual’s age at the time, any evidence of rehabilitation, their employment status, and any tenant history before/since the conviction. These housing providers must give the rental applicant at least five business days to respond to the notice. The response may include any mitigating information about the conviction to help prove the applicant’s eligibility as a fitting tenant. 

HB 5242 has received considerable support and opposition from different groups, as represented in a long eight-hour session with Connecticut’s Housing Committee. This discussion covered measures that would significantly impact tenant evictions, how one addresses a potential tenant’s criminal background, and notices of rent increases. The bill related to evictions over lease expirations is Senate Bill 143. 

Several critics argued that these bills negatively impact property rights and could complicate landlord-tenant relationships. More have commented on increased liability risks due to HB 5242’s limitations when considering criminal backgrounds. Despite these debates, the Committee voted to advance the bill. As a result, the legislation will now head to the floors of the House and Senate for further discussion.

Disclaimer:

Information provided here is for educational and informational purposes only and should not constitute as legal advice. We recommend you contact your own legal counsel for any questions regarding your specific practices and compliance with applicable laws.

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The Consumer Financial Protection Bureau (CFPB) recently focused on inaccurate tenant screening reports. This attention is due to what the agency has identified as “sloppy” background check practices. As such, the CFPB issued guidance addressing erroneous background checks and practices regarding sharing credit reports.

These two advisory opinions will address tenant screening practices and background checks. They would help guarantee the accuracy and reliability of either check. In addition to assisting landlords in making educated decisions, the CFPB hopes to ensure potential tenants can access the information themselves.

According to the CFPB, this new guidance stems mainly from a 2023 public inquiry from the agency and the Federal Trade Commission. This inquiry asked the public about their experiences with background checks for potential tenants. More than 600 responses described problems individuals experienced in the screening process. As such, the CFPB used this information to create its guidance for screeners and landlords.

One of the most notable points the CFPB focused on in its guidance is that background check providers must be accurate in the information they provide in their reports. For example, the reports should remove any unnecessary information. Unnecessary information includes expunged or sealed records and outdated or duplicated information.

The CFPB also reminded consumer reporting agencies that all information items have distinct reporting periods. In addition, the agency stressed that the periods depended on the date of the information. The CFPB used a criminal conviction as an example when explaining these timeframes.

In most cases, reports cannot include convictions that happened at least seven years ago based on the charge’s date. The CFPB also reminded agencies to include disposition information. The agency mentioned eviction proceedings, criminal charges, and other court filings as examples.

The CFPB’s second focus concerns individuals’ access to their information. According to the CFPB, background check information should become accessible to the individual involved. The agency emphasized that consumers have the right to receive all information in their files. This ability is crucial for potential tenants to guarantee accurate information and correct any false or misleading information.

This guidance has highlighted many of the issues present in tenant background checks. As such, the CFPB stressed the importance of landlords ensuring that the reports they receive comply with these requirements. This information is also relevant to background checks for other purposes, including employment. As CFPB Director Rohit Chopra emphasized, “Background check reports, and all other consumer reports, must be accurate, up to date, and available to the people that the reports are about.”

Disclaimer:

Information provided here is for educational and informational purposes only and should not constitute as legal advice. We recommend you contact your own legal counsel for any questions regarding your specific practices and compliance with applicable laws.

Source

The post CFPB Addresses Compliance With Tenant Screening Reports appeared first on JDP.

July 21, 2023

The post New Connecticut Law Changes Tenant Screening Process appeared first on JDP.